Pat E. GoodwinPat Goodwin Associates

pat@patgoodwinassociates.com

SHOULD I BECOME

A CONSULTANT?

You ARE One!

You were paid for that service—just not separately billed.

You already have an area of expertise.

You have functioned often as an internal consultant.

Difference: ‘Packaging’

An outside independent Bill for the service No responsibility for execution

Why do it? Self-employment-Autonomy Life Long Learning-You know more than

you think you know Good earning potential Satisfying work-Challenging Networking opportunity

We’re talking about . . .

Self-employed Solo operator but seek others

expertise Working out of home or low-overhead

office

Working for a consulting firmNOT. . .

Do I Want to Do It? Uncertainty of income 3+ months of income

saved Prospecting Selling Hassles of self-

employment

Can I Do It? Do I have the ‘right stuff’? Opportunity to learn Get help- Other Consultants-Experts What if I get over my depth?

What’s Your Expertise? Functional or technical area(s) Industry / industries Geographic areas A “matrixed” specialty? Collaborate with support group of

specialists

What We’ll Cover:

I. The consulting processII. Managing your practiceIII. Building your practiceIV. Assessing your personal

‘fit’

I. The Consulting ProcessThe “How”

Consulting: Giving (selling) advice

professionally.

The Independent Consultant: A personal service business based on

trust.

Consultant:

‘Brain on legs’

Consulting vs. Contracting

CONSULTING Independent

professional

Autonomy is critical

Deliverable is knowledge

CONTRACTING Employee without

benefits

Part of the team

Deliverable is a work product

Content vs. ProcessCONTENT

Functional area Technical

expertise Single intervention Contract

opportunity Linear project Boundary issues

not key

PROCESS Broad applicability Team dynamics Often expands Contract will

compromise role Cyclical

involvement Boundary issues

are critical

Edges get blurred . . . Can slip easily from

consultant to contractor

Can slip easily from content to process consulting

Watch where you step!

Consulting Stages1. Meet and qualify the client /

issue2. Define the agreement3. Collect, analyze data-purpose,

process, people, personal4. Provide recommendations,

possibly re-contract5. Implementation phase6. Close-out / follow-up

1. Meeting & Qualifying Presenting

problem Background Stakeholders and

prime mover Attempts to solve Duration Resources Expectations

2. Defining Agreement Services Resources Deliverables Timetable Compensatio

n Rights Acceptance

3. Collect, Analyze Data

Start with stated problem: What they think they want may not be what they need

Get to all key stakeholders-Buy in Get to important information sources Peel the onion Pinpoint the core issue Define a practical solution: Purpose, Process, People, Personal Why doesn’t the client do it

Data-Gathering Tips

What’s really important? To whom? Follow the work flow (through silos?) Anything working right? Where? Why? Where’s resistance coming from? Why?

4. Recommendations To all stakeholders Start with stated problem Trace the research Reframe the problem- Purpose, Process, People, Personal Get all reactions Sum up acceptance / resistance Get closure—or re-contract

5. Implementation

Not the consultant’s role! Danger!

Can advise as consultant Can refer a resource to implement Can serve as overseer for

implementation

6. Closeout / Follow-up May complete the consult On-going advice may be sought Probability of follow-on work Retained for audit / follow-up References: Ask permission to use work

as an example for other projects

Additional Reading

Flawless Consulting by Peter Block Process Consulting by Edgar Schein The Business of Consulting by Elaine

Beich Other recent books by Elaine Beich

II. Managing Your Practice

‘A Day in the Life . . .’

Business Plan Content area? Specific services? Geographic market? Market need

trends? Prospects? Biz objectives? Form of business? Risks/constraints?

Setting Fees What’s the market rate? What’s my expertise

worth? What’s my income

objective?

Market Rate?In Texas today: Day? Hour?

Other approaches:

Project Service trade Pro bono

Your Work ValueSALARY-BASED

Your annual compensation Divide by 2,000 (hours) Your accustomed rate per

hour

CONSULTING Multiply by 3 for parity Multiply by 4 for uplift

Your Income Objective$100,000 per year

is…

Month: $ 8,500

Day: $ 850

Hour: $ 100

$150,000 per year is…

Month: $ 12,500

Day: $ 1,250

Hour: $ 175

Billable DaysSTART-UP

Month total: 31Weekends: -7Administrative: -3Professional: -3Selling: -8BILLABLE:

10

MATUREMonth total: 31Weekends: -

7Administrative: -

3Professional: -2Selling: -6BILLABLE:

13

Overhead Office . . . ? Technology Administrative Marketing /

Branding Professional Self-employment

taxes & benefits Travel Costs Insurance / Legal

Fees

III. Building Your Practice

How Do I Get Clients?

Where to start? You’re not at ground

zero! Check your resources:

Vendors, Customers Check all contacts! Sort as:

- prospects (platinum!!) - advocates (gold!)

- talkers (silver)

What works:1:1: New networking Old networkingGroups: Speaking / Teaching Lecturing Publishing

Don’t overdo: Brochures Direct mail “Broadside” flyers Advertising Yellow pages

(Save your money)

Prospects to clients:

Personal familiarity Trusted referral Quiet research Validating your credentials Trial contact Bio Data Sheet, Business

Cards

Web Presence Checklist item Doesn’t “sell” Validates your

practice Gives you

global reach

Web Page Features Identity Credentials Photo/Bio Charter /

niche Services Professional

Groups

Testimonials Examples Fee guidelines Availability Topics E-mail link

LinkedIn

Web Page Benefits Tells your unique

story Validates prospect’s

choice Makes ‘yes’ easy:

comfort zone Can be interactive Easy to keep fresh

Practice-building keys:

Display your knowledge, expertise Professional visibility in the right places Show your unique style Frequently add value

IV. Assessing YourPersonal ‘Fit’

Is It Right for You?

Benefits of Consulting Autonomy Variety Low cost of entry Low overhead High earning

potential Great satisfaction, if

a fit

Risks of Consulting No structure No support

system Income

uncertainty Need to invest in

self with uncertain return

Work-life integration issues

Self-check: No structure? Self-promotion? Closing a sale? Comfort zone? Personal

situation? Money drive?

High-earning Consultant:

Strong drive to make money

Runs a BUSINESS! Works a niche Strong belief in self Focused, Disciplined,

Motivated Comfort with selling ‘Expert power’ drive

The Consulting Conflict

‘Expert power’ drive

versusMoney drive

Comfort Zone:

Built-in structure Rewards of managing Satisfaction of getting

results Accepted expertise

Test the waters…

Tricky to ‘try it for a while’

Tough to toggle with job search

Contracting is viable option

Consulting can lead to employment

Making the DecisionPERSONAL FIT

Expertise Interest Risks

SITUATIONAL FIT Financial Spouse, family Circumstances

Questions?